1. 1 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 Global ICT Management: Ericsson case study Georg Hodosi Employed at Ericsson since 85 Researching at IMIT

2. 2 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 Global management, agenda 1.Ericsson, history 2.Global ICT organisation & costs 3.ICT - Change 4.Questions & Answers

3. 3 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 Ericsson history Lars Magnus Ericsson In 1876 started his own company 1878 began producing his own telephone equipment 1890s the Swedish market reached saturation Great Britain, China and Russia were early markets.

4. 4 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05

5. 5 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 Ericsson on the top year 2000 Locations in 140 countries 40-42 % mobile world market 107.000 employee + 10.000 consultants Most mentioned company in Swedish media Able to influence politics

6. 6 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 ICT Infrastructure at Ericsson Leased lines for data and voice One large router/country One PABX at least /site At least one LAN/country

7. 7 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 Applications at Ericsson Common DBS and core applications R & D centres Production centres Offices Customers Partners & suppliers

8. 8 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 Cost Types Basic: Everybody has a PC and a phone E-mail, Internet? Office, security Specific: Applications for production, R&D Video Conference Equipment Databases…

9. 9 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 Ericsson Organisation Managing director, president CEO Group Functions Common Units BN Board of Directors BR BT EDT Defense REM ….. Others Italy UK

10. 10 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 Ericsson Organisation -2 BN: - ETX - EBC - MÖ BR: - ECS - ERA - …. BT: - ECS - ERA - …. Subsidiary: registered entity - EBC - ECS - MÖ

11. 11 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 How to distribute the basic costs? Corporate Sweden 30.000 employees. Ireland 10.000 employees - by # of employee - by usage - by profit, Robin Hood - free - your proposal!

12. 12 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 Global ICT - Decisions Corporate Sweden 30.000 employees. Ireland 10.000 employees - Centralized or decentralized - by profit - by costs - your proposal

13. 13 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 Keeping together Ireland Italy Germany Denmark Belgium Spain Sweden France Norway Australia

14. 14 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 Policy; different interpretations 1.A plan or course of business, intended to influence and determine decisions, actions, and other matters. US = it is a must! 2.In Sweden it is a wish but not a must!

15. 15 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 Global IT centres time delay Stockholm Dallas Kuala-Lumpur 12-13 fine 6 am 8 pm

16. 16 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 Global IT centres communication Stockholm Dallas Kuala-Lumpur “diplomatic” direct indirect

17. 17 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 When the revenues fall To survive Ericsson had to: Make savings in each area Sell whatever it is possible: –Rent the PC’s, Servers… –Close down applications –Outsource: PC, LAN and applications –Lower the standard: best effort

18. 18 © Georg Hodosi, e-mail: hodosi@it.kth.se Date: 2005-06-05 Questions & Answers